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Verizon Communications announced on Tuesday that a deal had been struck for Intel Media, which had developed a online TV service, OnCue Cloud TV. That service was developed but never launched.
According to Variety, sources said that the two sides agreed to a $200 million deal. Intel initially wanted up to $1 billion, but kept dropping the price tag as it looked for interested companies.
The purchase price gets both the OnCue and Intel Media division, which is located in Santa Clara, Calif. Verizon noted that the 350 employees will be offered jobs.
The Internet TV service was expected to launch last year, but Intel CEO Brian Krzanich canned the service as it was expected to be too expensive to break into competition against cable and satellite carriers, especially since programming rates would be higher.
Verizon said in a statement, "The transaction will accelerate the availability of next-generation video services, both integrate with Verizon FiOS fiber-optic networks and delivered 'over the top' [via broadband] to any device," notes The Hollywood Reporter.
Verizon CEO Lowell McAdam didn't specify a timeframe for when OnCue would be launched, but noted that the new on-demand service should excite customers as it will give consumers content "when, where and how they want it."
image: Wikimedia Commons